Anergi Group, Harith General Partners launch renewable energy adoption fund

AFRICA – Harith General Partners, an infrastructure investment firm, has partnered with and Anergi Group, an African power provider, to establish the US$300 million Pan-African Renewable Energy Fund (PAREF) to accelerate renewable energy adoption across Africa.

PAREF’s investments will seek to accelerate the execution of renewable energy projects on the continent through innovative development and financing mechanisms targeted at greenfield and brownfield projects.

PAREF will also aim to convert high carbon-emitting sources of power supply to less carbon-intensive options and will accelerate the adoption of value-enhancing power production and storage technologies.

PAREF aims to provide secure, affordable and low carbon sources of energy to drive industrial activities and socio-economic growth in Africa.

“PAREF is an important and urgent response to climate change – by accelerating Africa’s race to net zero, transitioning to a low carbon future and connecting millions of Africans to sustainable, green energy,” Sipho Makhubela, CEO, Harith said.

“Of the 770 million people without access to electricity, 75% live in sub-Saharan Africa. Coal, oil and biomass continue to play a significant part in Africa’s energy supply chain and the continent remains extremely vulnerable to climate change.

“PAREF will aim to take Africa’s energy supply into the 21st century to enable the transition to a low-carbon future.”

PAREF will build on the strong track record established by Anergi, a Harith-backed energy investment vehicle, in developing, financing and executing some of the largest independent power projects in Africa.

Anergi’s portfolio comprises five operating assets and a total installed renewable and thermal capacity of 1 413MW, supplying up to 23 million customers across Ghana, Kenya, Nigeria and South Africa.

The Harith/Anergi relationship is based on key synergies and close cooperation over more than 13 years. By way of illustration, Anergi provides project development expertise and resources, and Harith follows with investment capital.

Harith is kept abreast of development-phase milestones and mobilises towards the end of each project’s development phase to, among other things, widen the project’s access to funding and to optimise finance terms.

“The objective of the Fund is fully in line with Anergi’s strategy and mandate to be a key player in the implementation of the energy transition across Africa,” Neil Hopkins, Acting CEO, Anergi Group said.

“We are fully committed to utilising our project development experience, expertise and resources to convert our pipeline of renewable opportunities into operational assets that provide secure, affordable and lower carbon sources of power supply to individuals and industries across the African continent.

“Our commitment to accelerate the energy transition across Africa is complimentary to and equally matched by Harith. We are pleased to be able to work with Harith on establishing this Fund, which unlocks greater synergies, provides value to investors and builds on a long-term partnership between our firms that has been running for over 13 years.”

The fund will be key to bridging the energy access gap across the continent, while contributing to the just transition of energy by accelerating Africa’s move to low-carbon economies in a socially responsible manner.

The IEA estimates that closing the energy access gap in sub-Saharan African countries will require an estimated annual investment of US$28 billion from now until 2030, including US$13 billion for mini-grids; US$7.5 billion for grid investments and US$6.5 billion for off-grid investments.

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